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Price target moves around Severn Trent are relatively modest, with fair value in one updated model trimmed from £32.12 to £31.69. That aligns with a wider mix of analyst views, where targets span roughly 2,879 GBp to 3,500 GBp as opinions differ on how confidently to price the company's execution and risk profile. Read on to see what is driving these shifts and how to keep track of the evolving Severn Trent story as new information emerges.
Stay updated as the Fair Value for Severn Trent shifts by adding it to your watchlist or portfolio . Alternatively, explore our Community to discover new perspectives on Severn Trent.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Deutsche Bank maintains a Buy rating on Severn Trent, pairing it with a £31.50 price target. This suggests analysts there still see room for value if the company delivers on its plans.
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RBC Capital and Morgan Stanley both keep supportive stances, with Sector Perform and Equal Weight ratings and targets of £34.50 and £35.00 respectively. This indicates they see Severn Trent stock as reasonably positioned within its peer group.
🐻 Bearish Takeaways
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Citi has taken a more cautious turn on Severn Trent, downgrading the stock and setting a lower target of £28.79. This points to concerns about execution risks or a tighter risk and reward trade off.
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The mix of Buy, Neutral and Sector Perform or Equal Weight ratings across Citi, Deutsche Bank, RBC Capital and Morgan Stanley underlines that analysts are split on valuation and how confidently to price Severn Trent's future delivery.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 2 risks for Severn Trent. See which could impact your investment.
How This Changes the Fair Value For Severn Trent
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Fair Value reduced from £32.12 to £31.69.
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Revenue Growth updated from 8.31% to 8.77%.
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Net Profit Margin adjusted from 17.75% to 17.53%.
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Future P/E revised from 18.56x to 18.50x.
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Discount Rate held at 7.38%.
Never Miss an Update: Follow The Narrative
Narratives link Severn Trent's business story to analyst forecasts and a fair value framework, updating as new data and views come through. They help you see how operational plans, regulation and risks fit together in one place.
Head over to the Simply Wall St Community and follow the Narrative on Severn Trent to stay up to date on:
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How higher enhancement totex and insourced project delivery are being used to meet statutory requirements while aiming to support revenue and RCV growth.
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Severn Trent's focus on reducing spills, targeting global best practice levels and pursuing ODI outperformance through operational efficiency and customer metrics.
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Key risks around Ofwat's final determinations, weather driven spill performance, and cost pressures that could affect margins and ODI based rewards or penalties.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SVT.L .
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